NEW DEVELOPMENTS IN BASS — STRAIT THE LOW- COST CHALLENGE

Abstract

Esso Australia, with its co- venturer BHP Petroleum, is planning to bring five new fields into production in 1989. These fields are relatively small, with total reserves of approximately 50 million barrels (7950 ML). Development concepts new to Bass Strait have been identified to make them economically attractive.

The significant change made to the fiscal environment of Bass Strait in June 1987, when the Government provided an exemption from excise for the first 30 million barrels (4770 ML) of oil production for certain offshore projects, has played a key role in the economic viability of these developments.

The Whiting field will be developed with a mini- platform, the Seahorse and Tarwhine fields with satellite sub- sea wells, and the Perch and Dolphin project will use mono- towers.

New organisational and technical approaches have been used to select cost- effective development options for these fields. These approaches include increased inte­gration between exploration and production activities, reductions in capital expenditure through applying novel concepts and researching big ticket items such as facilities installation, and minimising of operating costs by remote operation of facilities.

With the developments planned for 1989, and with ongoing research, the outlook can be described as opti­mistic provided tax regimes continue to encourage development of small fields both in Bass Strait and elsewhere offshore in Australia.